To The Moon

$Nasdaq 100 ETF(QQQ)$ and $SPDR S&P 500 ETF Trust(SPY)$ represent the broad market indices, both of which are long-term investment targets.

As mentioned earlier, the retracement level of the broader market is less than the individual stocks in the market crashes.

This article will analyze the advantages and disadvantages of $Nasdaq 100 ETF(QQQ)$ and $SPDR S&P 500 ETF Trust(SPY)$ .

Disadvantages of QQQ

1. Daily trading volume and options liquidity is smaller than the SPY.

-- This is acceptable because the liquidity of QQQ is good enough.

2. QQQ tracks $NASDAQ 100(NDX)$ and highly concentrated.

The top 5 largest market cap companies account for nearly 40% of $Nasdaq 100 ETF(QQQ)$ , and technology companies account for 50%.

-- It bothers me, especially it's highly correlated with individual company such as $ Tesla (TSLA)$.

3. QQQ takes more time to rebound.

If you bought QQQ at its highest point in 2000, you need 14-15 years to break even, but spy only need 6 years.

-- Regular trade can reduce the average cost.

You can also "sell Put" and set the right strike price to reduce the cost.

Or you can "sell covered call" and reduce costs.

Advantages of QQQ

1. Higher return

From the past 5-20 years, QQQ returns beat SPY by several points a year.

2. Higher Options IV

Returns brought by "Sell put" will be higher (which is fair enough, qqq has higher risks),

QQQ weekly level IV at 32% + SPY IV at 25% +

Conclusion

Combining the pros and cons, for me, it's better to go with $Nasdaq 100 ETF(QQQ)$ and plan to sell $Nasdaq 100 ETF(QQQ)$ put every week.

If it fell below the striking price, I will buy the underlying shares and continue to sell put at a lower price. And the QQQ option has a shorter period, its options expire every 2 days.